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How Does Google Make Their Money

HOW GOOGLE MAKES MONEY

Google is a very popular search engine, email service and web browser. It is the most popular online utility in the world. What a lot of people don’t mostly know, is that all this online services rendered by Google comes at a free cost. The parent company of Google is known as Alphabet. When the made it’s earning to be publicly known, it was discovered that for over a quarter, they have made over $33.7 billion dollars in revenue. There has been growing concerns about how Google uses its uses its controversial algorithms to prioritize content on the web. In the course of this article, we would be looking at a complete breakdown on how Google makes its billions of Dollars every year.

Search Advertising and Google Adwords

Majority of the $110.8 billion that was accrued by this company came from its advertising service “Google Adwords”.  When you use this popular search engine to search for anything related to Health and fitness information to financial information, you would be given an index of results generated by the google algorithm. In the list, you would see relevant results for your search query and alongside these results, you would also see suggested pages from the Google Adwords advertiser.

 All of Google Adwords advertisements cuts across all of Google’s web services. Majority of the sites recommended to you by google, also comes from the Google adwords program. For you to be in the spotlight of Google’s adverts, you need to outbid your fellow competitors. Lower Ad bids don’t even get to be displayed. Each time a visitor clicks a link to an advertisement, the advertiser would pay for it. The cost of a click can range from a few cents to over 60 dollars. The cost of each click is very much dependent on the competitiveness of the search term. Search terms can be mostly related to Loans, Insurance, health and fitness etc.


Google Adsense Network

Another approach used by google to feature advertisements is the Google Adsense program. With this platform, google can display adverts on their search pages. These adverts are only displayed on google approved websites on the internet. Whenever a site visitor clicks on an advert on a member site, a part of the revenue would be sent to the site, while the remainder of the fee would be kept by google. Due to the large number of companies advertising through the network, a lot of businesses depend on google adsense as their primary revenue source.

Other sources of Revenue for Google

There are other sources of income for the google company. They range from both offline to online base businesses.

Lets do a brief review of them

Play store revenue

Google owns the android platform. Majority of the smart phone companies in the world always opt for the Android operating system because of its very large app ecosystem. There are over 1 billion apps on google play store. Play store is a store where android can download apps from. Play store features a wide variety of free and paid options that cut across various niches like games, utility apps etc.  Also, as a developer, I you want to upload your app on google play store, you have to pay a onetime fee of $25. 

Firebase Revenue

If google has a vast app ecosystem that means that they have a lot of developers. The Firebase google cloud product is a used by google to offer developer services to its clients. There are free options and paid options. Free options for developers include services like authentication services, Firebase chat, vast API integrations with open source google API’s, etc. An example of a paid Firebase option is app hosting. Here, developers can host their android apps with google’s Firebase cloud platform.


Conclusion

Over the past couple of years, google’s revenue has been exponentially growing . I bet that this is due to their vast innovations that is helping them to constantly beat down there competitors. Majority of the other businesses that google is involved in yields a lot of billion, but on a side-note, there main source of income is via online advertisement. And in my own very opinion, I don’t think that their presence in the advertisement ranks would be changing anytime soon.

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